JR Tokai, subsidiary penalized for bid-rigging railway overpass inspections

Central Japan Railway Company (JR Tokai) and its consolidated subsidiary, JR Central Consultants Company, have received cease and desist orders from the Japan Fair Trade Commission (JFTC) for violating the Antimonopoly Act. This action follows an on-site inspection concerning railway overpass inspection work commissioned by local governments.

JR Tokai coordinated with contractors, including JR Central Consultants, to predetermine successful bidders for overpass inspection work. JR Central Consultants further engaged in price adjustments among five companies to ensure the intended contractors secured orders. As a result, JR Central Consultants also received a surcharge payment order of 34.77 million yen, which includes a 30% reduction due to its application to the JFTC's leniency program.

Both companies have ceased the conduct in question and plan to establish new action guidelines for compliance with the Antimonopoly Act, implement periodic training, and conduct audits to prevent recurrence. JR Central Consultants has recorded a provision for loss of 135 million yen related to the Antimonopoly Act violation.